The head of David Hotel Department of Savills Pacific said that there are three main reasons for the "flop" phenomenon of established international hotels such as Hilton and Sheraton. First, the contract expires and the owner intends to carry out brand renovation or other transformation plans. "Hotel management contracts generally have a signing period of fifteen or twenty years. After decades of development, in recent years, it is the node where many international brand hotel management contracts expire."

second, the maturity of the market makes some owners confident to operate and manage independently. Because of the rapid development of hotels in China in recent ten years, many owners have grown up with these international brand hotels, and their own hotel management ability has been greatly improved during the contract execution period, so they will also consider managing by themselves. Thirdly, the channels of tourists are becoming more and more abundant, which challenges the competitive advantage of international brands. Signing an international hotel brand can bring rich customers, including international and domestic customers. However, with more and more favorable factors in the market environment, the customers brought by international brand hotels are slowly changing, and domestic brands are beginning to be able to cooperate and compete with some international distribution and sales systems.

at present, as the hotel market in first-and second-tier cities tends to be saturated, the market is more in the form of renovation or flop, and more new hotel projects are concentrated in third-and fourth-tier cities. From the investment point of view, if international brand hotels settle in third-and fourth-tier cities, it is likely that high investment will bring low returns.